Getting to Know Cryptocurrency Investment

In the previous article, DailySocial reviewed basic conceptscryptocurrency (cryptocurrency) as a transaction tool and available variant now and its advantages and disadvantages.

Cryptocurrency commodities in Indonesia are starting to be of great interest to the wider community. Community trader easier to find. Generally they buy and sell cryptocurrencies for investment, considering the current price tends to be very volatile. On the other hand, blockchain as the foundation of cryptocurrencies is also becoming a technology that is highlighted by the financial sector.

While blockchain as a digital platform is still being explored, crypto currency as the embodiment blockchain, continues to thrive among consumers. In addition to dealing with transactions, ICOs (Initial Coin Offerings) are also a process that is starting to be found among business people. ICO is a fundraising process to build an app-based blockchain, various forms ranging from new cryptocurrencies, Smart contract, to smart ledger.

In Indonesia alone, there are at least three businesses that are trying to do ICOs, including Tokenomy, Pundi X, and Vexanium. Each offers different characteristics, with different business processes.

Invest in cryptocurrencies

The popularity of cryptocurrency investments is driven by the ease of transactions. Everyone can now create a "cryptocurrency wallet", a term for digital accounts used for storing and buying and selling. In Indonesia, there are already several platforms that serve the process of making crypto wallets. This includes making it easier for users to connect the wallet with a bank account such as PayPal for payment processing or redemption.

The above process can be regarded as an initial registration mechanism before users can make transactions on popular cryptocurrencies such as Bitcoin. By providing a detailed identity, the process usually only takes a few minutes. Furthermore, users can freely make transactions to purchase these digital assets.

A few things to note

If you follow the trend of Bitcoin or other popular cryptocurrencies, then it is clear how the fluctuations in value occur in a very wild, unpredictable manner. At one time the price may fall, at other times the price may increase drastically. Cryptocurrency investors are trying to take advantage of this volatility in the hope of making a profit when making purchases with a smaller amount. Unfortunately for popular crypto currencies the value is already very high, so investing requires a lot of foresight.

It is recommended for early investors to start small and buy cryptocurrencies that have good credibility. Monitoring the prices and developments of the cryptocurrency market should also be the daily diet of investors. This at the same time brings investors to understand the target that must be determined, for example targeting the value of their investment at a certain point, then withdrawing it again or increasing capital by purchasing new assets.

In many cryptocurrency trading platforms, they provide a nominal purchase limit service. Users can set digital wallets to make purchases or sales automatically at a certain value limit. This automation also helps novice investors in observing market fluctuations. What needs to be understood from the start is that the process of selling digital assets is much more difficult than the process of buying them. However, with the proliferation of digital asset trading platforms, making these transactions much easier.

About ICOs and investing in them

In the fundraising process, ICO bearers usually offer a number of tokens which are priced in crypto currency units. To investors, business people assure this token will be of high value along with the success of the project being worked on. According to regulations in Indonesia, there are no definite rules regarding ICOs, generally investors who are interested only have speculation and confidence in the project blockchain in the future. Ethereum is one example of successful ICO-based projects, offering blockchain implementations for features Smart contract.

As with any investment, nothing guarantees the success of a business's ICO campaign. Even for some offers, it is indicated as scam, because the product looks unclear or impossible to realize. Not a few ICO projects fail to meet funding until the specified time stage. Nevertheless, seeing the potential blockchain many believe that some platforms can be a business support for the future.

So we can conclude some simple tips if you want to get involved in investing through ICOs:

• Understand and research in detail the product to be developed. Read references about the future of the product in terms of market share and possible realization.
• Learn about founder conducting ICO campaigns, make sure to have experience and track record clear. Preferably indeed founder experienced in the field being worked on.

Still at risk

Cryptocurrencies present a variety of perspectives, both implying a positive or negative outlook. As the author's subjective view, currently crypto-based investments still look less stable. Indeed, there is demand-supply large indicates that it contains strong economic movements. In conclusion, it still deserves to be used as an investment commodity, with a limited and secondary value.

One of the most relevant ways to increase the scalability of cryptocurrencies is regulatory support, in this case Bank Indonesia. Until this stage, the regulator is still exploring the various possibilities that can be generated by blockchain. The potential is great, the proof of which is still a challenge for the perpetrators. Believing in an investment is not wrong, because every investment always contains risk. For now, the risk of investing in cryptocurrency is quite large with a wide range of possibilities in the market share.